Targeted Jobs Withholding Tax Credit
Assisting Businesses & Encouraging Development in Pilot Cities
The Targeted Jobs Withholding Tax Credit is a pilot program that allows diversion of withholding funds paid by an employer to be matched by a designated pilot city to create economic incentives directed toward the growth and expansion of targeted businesses.
- Withholding agreement allows up to 3% of gross wages paid by the employer to be directed to the project budget on a quarterly basis
- All designated withholding funds and matching funds are to be used for a project related to the employer as defined in the withholding agreement
- Must be approved by the Iowa Economic Development Authority Board prior to the execution of any withholding agreement
- Withholding agreement may have a term of up to 10 years
- Must be located in Burlington, Council Bluffs, Fort Madison, Keokuk or Sioux City
- Must be relocating to Iowa from another state and creating jobs at or above the hourly wage threshold for the city, OR
- Be an existing Iowa business creating or retaining 10 new jobs at or above the hourly wage threshold for the city, OR
- Be an existing Iowa business making a qualifying investment of $500,000 within a pilot city
- Effective July 1, 2023, FY 2024 hourly wage thresholds are:
- Burlington: $25.05
- Council Bluffs: $26.35
- Fort Madison: $26.17
- Keokuk: $26.17
- Sioux City: $24.96
How Do I Apply?
Complete the Iowa Project Questionnaire (IPQ) pre-application so IEDA staff are able to provide individual assistance and guidance to ensure access to programs that best fit your needs.
Upon completion of the IPQ, applicants invited to apply for financial assistance may complete the Application for Financial Assistance.